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Full text of "Annual Evaluation Report Fiscal Year 1984"

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C. Costs9 Benefits, and Effectiveness (Continued)

Funds Distributed to Local Educational Agencies: In 1982 State for-
mulas distributed about 70% to LEAs based on enrollment, and over
half used two or fewer high-cost factors (usually economic need or
sparsity or presence of exceptional students) (E.2). Subsequent
changes to their formulas have not substantially changed these

LEAs received a total of $352,009,097 in program year 1982-83 under
State-developed formulas. Based on information from 33 States (E.3),
LEAs allocated 84.8% of the funds to Subchapter B, with Subchapters
A and C receiving 6.0% and 9.2% of the funds respectively. They
budgeted a total of $35,096,861 for the purchase of library resources,
textbooks, and instructional materials; and an additional $50,035,790
for instructional equipment. We doubt that spending patterns changed
much for FY 1984.

Preliminary findings from the second year of case study work in nine
states (E.4) provided information on LEAs1 administrative and program-
matic responses to the Chapter 2 program. General tendencies, based
on interviews in approximately 100 districts during program year 1983-
84, included:

o Planning for Chapter 2 has been integrated into ongoing district
mechanisms. Stronger planning mechanisms included greater parental

o Former participating districts in the Emergency School Aid Act
(ESAA) did not respond similarly to Chapter 2, Some continued
to support former ESAA activities with Chapter 2 funds; others
used those funds for different activities.

o Even among districts that lost money under Chapter 2, the increased
flexibility and local control of decisions make Chapter 2 more
attractive than the programs it superseded.

o Chapter 2 programs are used to support, in whole or in part, high
priority programs. Chapter 2 funds enable LEAs to implement a
priority more quickly or with broader coverage than would otherwise

o Computer-related purchases are directly related to district goals
and tend to include hardware and software purchases and teacher
training in planned sequences.

Initial Monitoring Findings: On-site monitoring of States' Chapter 2
administrative practices in 25 States during FY 1984 (E.5) found:

o Overall, State program administration complied with statutory

o The two most frequent weaknesses were: (1) SEAs1 lack of on-site
LEA monitoring, and (2) SEAs1 failure to check LEAss compliance
with requirements for private school participation.                    593,042